IBERO-AMERICAN NEWS DIGEST
LaRouche Movement Tells Desperate Mercosur Leaders: Time for New Bretton Woods
The Ibero-American Solidarity Movement (MSIA) issued the following declaration July 3 in capitals of the continent, on the occasion of the summit of the Mercosur (Common Market of the South) countries, Argentina, Brazil, Paraguay, and Uruguay, with the Presidents of Bolivia, Chile, and Mexico, in Buenos Aires. The statement was immediately endorsed as its own, by the Movement for National Identity and Ibero-American Integration (MINEII), the political movement associated with Argentine Col. Mohamed Ali Seineldin. The text of the statement follows.
Argentina-Brazil-Mexico: Joint Negotiation, Now!
The simultaneity of the crises suffered by Argentina, Brazil, and Mexico, to name only nations of the Ibero-American continent, leaves no room for doubt that we are face to face with a global systemic crisis, whose dynamic is leading towards social explosions which threaten to dissolve the sovereign nation-state and its basic institutions. Even more serious, is the state of economic and political decomposition of the United States itself, whose government is attempting to ignore the implosion of the global financial bubble, stupidly taking recourse to a militaristic solution which desperately seeks to create an enemy at any cost. As Presidential pre-candidate Lyndon LaRouche explained during his visit to Sao Paulo, Brazil in the second week of June, we face an empire which is collapsing under the weight of its own delusions, confusing real wealth with a virutal wealth which never existed, except in the sui generis accounting of the capital markets, which today evaporates in the light of day. Yesterday Enron, today Worldcom, tomorrow Xerox, General Electric and many more will go down the sewage pipe of bankruptcy.
The Ibero-American nations cannot wait until the whole continent becomes a gigantic no-man's-land where only desperation, hunger, misery, and the organized crime of narcoterrorism at the service of Wall Street, reignconditions produced by the impossible attempt to pay a debt which is part of the world speculative bubble, without any connection to the process of production of real wealth.
Twenty years ago, when this whole neo-colonial process was put togetherthe which was later baptized with the euphemism of "globalization"it was possible to stop it, and avoid its present consequences, when Mexican President Jose Lopez Portillo took the historic and heroic decision to suspend payments on the foreign debt in August 1982, and proceeded to impose exchange controls and nationalize the country's Central Bank. On that occasion, everything was ready, had Brazil and Argentina supported it, to open a new era of sovereign negotiations, dedicated to achieving a more just new world economic order. At that time, Lyndon LaRouche made available to all patriotic forces an economic survival plan which he called "Operation Juarez," a plan whose point of departure was the necessity of forming a debtors cartel to advance the project for the physical integration of the continent; the formation of a customs union, and even the creation of an Ibero-American currency to mediate intra-regional trade. With this kind of global reorganization, even the banks could have survived. This, 20 years ago.
But the governments of these nations were captivated by the infantile argument that each nation was a separate case, and that, of course, their situation was better than that of Mexico. Mexico was isolated, and lost its sovereignty, opening the way for the gradual process of occupation and economic annexation to the United States which we see today in the North American Free Trade Agreement and its sequel, the FTAA.
Twenty years later, we return to a similar situation. The crisis exploded in Argentina and brought this nation to the brink of dissolution in endless social chaos. It is presented as a special case, different from that of Mexico or Brazil, with the intention of once again blocking necessary collective action. Any attempt by the governments in the form of "business as usual" will not only be useless, but, de facto, will tend to worsen the consequences.
- The History of 20 Years Ago Must Not Be Repeated - In this context, and facing a reality which increasingly insists upon violating ideological manuals and academic prescriptions, the three largest economies of Ibero-AmericaArgentina, Brazil, and Mexicoshould unite, not only to defend their legitimate interests, but also to establish a powerful bloc which, together with countries such as Russia, China, India, South Africa, Malaysia, and others, would be in a position to pressure for a workable and responsible reorganization of the international financial and monetary system, today fatally dominated and corroded by sterile financial speculation.
A feasible proposal already exists for this reorganization, a "New Bretton Woods" along the lines proposed by Lyndon LaRouche, which we have insistently defended since 1997, which would ensure a return to the best characteristics of the original system which made possible the great economic recovery and development of the postwar period. As LaRouche emphasized in his speech in the auditorium of the Latin American Parliament in Sao Paulo, on June 11, there is no sensible alternative to that of changing the current "rules of the game."
This time it is hoped that the lessons will have been learned. Separated, it is certain that we will be devastated, as Argentina is being devastated. United, we could make prevail the fundamental interests of our peoples, which are also those of all humanity.
Ibero-American Leaders in Commotion Over Economic Crisis
The July 5 expanded Mercosur summit, bringing together the Presidents of Bolivia, Chile, Mexico, Argentina, Brazil, Paraguay, and Uruguay, has leaders facing an existential crisis, at the same time that the Bush Adminstration's credibility in the region has completely collapsed.
In a June 27 interview with Mexican television, Brazilian President Fernando Henrique Cardoso charged that the Bush Administration considers Ibero-Americaabout which it is "ignorant""irrelevant," but suggested that may not be a disadvantage. Asked what Latin America could do to combat the U.S. indifference, Cardoso said he wasn't sure it was worth combatting.
According to Folha de Sao Paulo, Cardoso said:
"The fact of being irrelevant gives us the space to do what we want." [It opens the possibility of] "inserting ourselves in the international economy in the way which is most favorable to us. At this time when it appears that we are most irrelevant, let us try to take care of ourselves, and also establish ties such as we have with Mexico, such as Mexico did with Europe, such as Chile did with Europe [a reference to free trade accords]. We have to broaden this network of trade and economic ties so that, at a later time, when it is possible to gain more relevance in the international scene, we have greater force."
As for Brazil's financial "turbulence," Cardoso compared the financial markets today to George Orwell's novel, 1984: "Big Brother exists today, not in the way we imagined, as a dictator, but in the form of the markets. The financial market is the Big Brother."
Argentina's Clarin commented this was Cardoso's way of promoting a common strategy to confront the financial crisis affecting the continent. "And he did so on the eve of an important Presidential summit in Buenos Aires."
Brazil: Imperialists Worried After LaRouche Trip
Lyndon LaRouche was the unnamed subject of a July 1 Washington Post warning on Brazil's debt crisis. Sebastian Mallaby, the Washington Post's resident Brit, who is the "Liberal Imperialist" who penned the Foreign Affairs article earlier this year, calling for a revival of the old British Mandate colonial system under U.S. direction, wrote an op-ed called "Between a Rock and a Bailout," which made an unmistakable warning reference to Lyndon LaRouche, without mentioning his name. Recall that it was the Washington Post's Steven Rosenfeld, who, in 1976, laid down the law to all U.S. media, to never mention LaRouche, except in a slanderous context, and never identify his policies in any other way.
Mallaby's op-ed warns that President Bush will soon have to abandon his "no bailout" policy towards Third World countries that get into debt trouble. He cited Brazil as the most dangerous case of a looming default and "dreaded meltdown," blaming it on regional and domestic problems, including the strong showing at the polls of Presidential candidate Lula, but never mentioning the global financial crash as the root cause of the Brazilian crisis. Then he got to his central point, and his warning to Bush to abandon the "no bailout" orthodoxy: If the IMF and related methods of crisis management are not used, countries may resort to "crazy policies"like Mexican President Lopez Portillo's 1982 nationalization of the banks.
Mallaby wrote, "The unmanaged chaos of the 1980s debt crisis triggered a wave of crazy policies across Latin America, where the bailouts of the Clinton period minimized the wacky stuff. After defaulting in 1982, for example, Mexico nationalized its banks. After being rescued by the Clinton team in 1995, by contrast, Mexico stuck to orthodox policies. The mantra of the "no bailout" peoplethat a crisis is the medicine that will cure bad policiesmay sometimes be exactly wrong. Crises can be the poison that brings on even worse policiesboth in Latin economies and in Israel lately." Mallaby concluded, "So the Bush team faces some tough choices. On the one hand, bailouts are no panacea. On the other, standing back can cause problems to grow deeper. If giant Brazil gets more wobbly in the run-up to its October elections, will Bush really refuse help?... The betting is that Bush would end up wading in, even if he's only got a half-baked plan and even if the mess is basically insoluble."
Brazilian Congressman Greets 'Moment of Truth' Seminar
Luis Carlos Heinze, Brazilian Federal Deputy, of the Brazilian Progressive Party (PPB), sent greetings to the Fifth Brazil-Argentina: Moment of Truth seminar, held on June 14 in Sao Paulo, in the auditorium of the ADESG (Association of Graduates of the Superior War College). American economist and Presidential pre-candidate Lyndon LaRouche delivered a groundbreaking address to the meeting. The text of the greetings follows.
June 13, 2002
To: His Excellency Adauto Roccheto
Delegate, Association of Graduates of the Superior
War College.
Sao Paulo, Sao Paulo
In cordially greeting you, I refer to the Fifth Brazil-Argentina: the Moment of Truth seminar, to be held in that city tomorrow, June 14, with the most important participation of Mr. Lyndon LaRouche.
Unfortunately, I will not be able to attend this important event, as I would have wished, as I have other previously scheduled, unpostponable commitments in the Capital on that date.
I understand that Dr. Lyndon [LaRouche] will be discussing important matters related to the new financial system, along the lines of the New Bretton Woods conference.
Would your Excellency be so kind as to transmit my sincere apologies to Mr. Lyndon LaRouche, for not being able to attend such an important seminar.
Cordial regards
Luis Carlos Heinze,Federal Deputy
Brazilian Progressive PartyRio Grande do Sul
Colombia Paralyzed by Pastrana's Inaction Against FARC Threats
Since Tuesday, July 2, another 120 mayors have resigned in Colombia under threat from the narcoterrorist FARC that they must either leave office or be named "military targets." Judges and city councilmen are also leaving their posts in droves, and whichever mayors are sticking it out, are doing so from army barracks or urban centers as far as 200 miles away. Officials in at least 25 of the nation's 32 departments have received threats. The result of these resignations is that city government operations don't existcourts and law enforcement are not operating, no taxes are collected, no city payrolls are met, no garbage is collected, no roads are repaired.
The executive director of the Federation of Councilmen reports that FARC threats have reached 6,400 city councils. The Federal government admits that 180 towns are presently without any police or military presence, making defense of elected officials impossible. The director of the Colombian Federation of Townships, representing nearly 1,100 mayors, is demanding that President Pastrana declare a state of siege and the call-up of reserves, which Pastrana refuses to do.
Despite Pastrana's insistence that the resignations "will not be accepted," and his latest denunciation of elected officials who "are running at the first phone call or fax" threat, the reality is that the government has no ability to defend these people or their families. All the government has been able to offer is bullet-proof vests and armored cars. Interior Minister Armando Estrada declared that life insurance contracts for the threatened mayors were "under study." As one measure of "deterrence," Pastrana has offered $2 million a head for information leading to the capture of the top FARC leadership, which most Colombians have scoffed at.
Although President-elect Uribe Velez, who will be inaugurated on Aug. 7, has promised to take a hard-line with the narcoterrorists, he is obviously going to be handed an ungovernable nation by the time he takes office.
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